Insiders Who Sold US$3.3m Of Rubrik Made The Right Call

While Rubrik, Inc. (NYSE:RBRK) shareholders have had a good week with the stock up 27%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell US$3.3m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Rubrik

Rubrik Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Barry Eggers, for US$3.3m worth of shares, at about US$32.74 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$64.63. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 64% of Barry Eggers's holding. Barry Eggers was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Rubrik Have Sold Stock Recently

The last three months saw significant insider selling at Rubrik. Specifically, insider Barry Eggers ditched US$3.3m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Rubrik

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Rubrik insiders own 20% of the company, worth about US$2.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Rubrik Tell Us?

An insider hasn't bought Rubrik stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Rubrik (including 1 which makes us a bit uncomfortable).

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.